Mortgage rates look set to increase, with many in the industry claiming it is better to take out a mortgage sooner rather than later.
New analysis has found that two-year and five-year swap rates have fallen since the middle of April after the Bank Rate was held. Swap rates display the rate at which banks expect to be able to lend and borrow. A decrease in swap rates tends to mean that customers see a fall in the interest rates they are charged. A drop in the two-year swap rate from 1.12% to just 0.89% spells good news for customers looking to borrow from banks, as a number of lenders have already reduced rates.
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Mortgage brokers do not expect rates to fall much further, if at all. Variable rates are also being recommended, as the Bank Rate would need to increase multiple times over the next few years for rates to become uncompetitive.
More on the increase in cheaper mortgages can be found on The Telegraph website. If you would like help in choosing the right mortgage package for you, we have a number of experienced advisers who can assist you in your search. Please get in touch if you would like more information.